1. E-Usage & E-Access Baseline Survey 2004

2. Table of Contents  Introduction  Methodology  Household E-Usage  Perception of Telecom Namibia  Mobile Usage  Public/Work Phone Usage  Internet Cafe Usage  Namibia compared  Conclusion  Introduction  Methodology  Household E-Usage  Perception of Telecom Namibia  Mobile Usage  Public/Work Phone Usage  Internet Cafe Usage  Namibia compared  Conclusion

3. Introduction  Surveys were carried out in 11 countries (Botswana, Cameroon, Ethiopia, Ghana, Mozambique, Namibia, Rwanda, South Africa, Tanzania, Uganda and Zambia)  Aim: understanding demand and usage pattern; what is happening in the ICT sector from the lens of the user  Surveys were carried out in 11 countries (Botswana, Cameroon, Ethiopia, Ghana, Mozambique, Namibia, Rwanda, South Africa, Tanzania, Uganda and Zambia)  Aim: understanding demand and usage pattern; what is happening in the ICT sector from the lens of the user

4. Methodology  National Household Survey  Namibia split into three regions for sampling: Major Urban (Windhoek, Walvisbay, Swakopmund), Other Urban, Rural  Random sampling procedure  854 households were sampled and information for 4163 household members collected  Information was collected for all household members  Questionnaire was based on UN Surveys  Classifications were used for living conditions and exposure to consumer electronics  National Household Survey  Namibia split into three regions for sampling: Major Urban (Windhoek, Walvisbay, Swakopmund), Other Urban, Rural  Random sampling procedure  854 households were sampled and information for 4163 household members collected  Information was collected for all household members  Questionnaire was based on UN Surveys  Classifications were used for living conditions and exposure to consumer electronics

5. Household E-Usage

14. Perception of Telecom Namibia  Telecom Namibia responds promptly to our concerns!  Telecom Namibia’s services are excellent!  Telecom Namibia has good customer care practices!  Telecom Namibia's tariffs and rates are reasonable!  Telecom Namibia responds promptly to our concerns!  Telecom Namibia’s services are excellent!  Telecom Namibia has good customer care practices!  Telecom Namibia's tariffs and rates are reasonable!

15. Perception of Telecom Namibia

17. Mobile Phone Usage

22. Public/Work Phone Usage

27. Internet Cafe Usage  Only 51 out of 854 households surveyed had a household members that use the Internet  Out of 4163 household members, only 3.9% (162) had an email address  Those that used the Internet were highly exposed to consumer electronics (average 7.88)  In urban areas the main barrier to private Internet access is income and access to fixed line telephony  Only 51 out of 854 households surveyed had a household members that use the Internet  Out of 4163 household members, only 3.9% (162) had an email address  Those that used the Internet were highly exposed to consumer electronics (average 7.88)  In urban areas the main barrier to private Internet access is income and access to fixed line telephony

28. Namibia Compared

32. Conclusion  Expenditure for communication has increased disproportionally compared to increase in disposable income  Reducing costs of communication is key to bridge the digital divide  Victory of pre-paids: cell-phone, electricity, household phones. Poor people prefer not to enter into financial commitments  Namibia is lagging behind its potential  Expenditure for communication has increased disproportionally compared to increase in disposable income  Reducing costs of communication is key to bridge the digital divide  Victory of pre-paids: cell-phone, electricity, household phones. Poor people prefer not to enter into financial commitments  Namibia is lagging behind its potential

33. Recommendations  Open up the market: Plan was to have 2nd Fixed line operator by 2004 and second mobile operator by 2002 - 2005 still neither in sight  One potent regulator for the entire ICT industry - Namibia is still in regulatory limbo  Allow VOIP for everyone  Free Telecom Namibia of its USO after opening of the market  Introduce a Universal Service Fund that directly promotes rural and poor connectivity. This fund can be funded by a percentage of turnover of any telecom operator  Open up the market: Plan was to have 2nd Fixed line operator by 2004 and second mobile operator by 2002 - 2005 still neither in sight  One potent regulator for the entire ICT industry - Namibia is still in regulatory limbo  Allow VOIP for everyone  Free Telecom Namibia of its USO after opening of the market  Introduce a Universal Service Fund that directly promotes rural and poor connectivity. This fund can be funded by a percentage of turnover of any telecom operator Brining Down the Costs:

34. Recommendations  Use innovative technologies to connect more Namibians: fixed-mobile convergence, telephony over power lines…)  Increase Namibia’s international bandwidth (connect to undersea cable, VSAT)  Free dedicated radio spectrum for rural communities and schools  Market the remaining radio spectrum (auction)  Use innovative technologies to connect more Namibians: fixed-mobile convergence, telephony over power lines…)  Increase Namibia’s international bandwidth (connect to undersea cable, VSAT)  Free dedicated radio spectrum for rural communities and schools  Market the remaining radio spectrum (auction) Wider and better access to ICT:

35. Telecommunication (ICT) used to be of strategic, military importance Today ICT is of strategic economic and social importance! The lower the costs of ICTs the more economic growth, employment and equal access to information!